The maximum incremental social tolerable irreversible costs (MISTICs) and other benefits and costs of introducing transgenic maize in the EU-15
AbstractThe decision to release a new transgenic crop variety for planting in the European Union (EU) is a decision under irreversibility and uncertainty. We use a real option model to assess the ex-ante incremental benefits and costs of the decision to release Bt maize and HT maize in the EU-15 member states. The analysis uses Eurostat data for modelling the benefits and costs of non-transgenic maize using partial equilibrium models. The farm-level benefits and costs of Bt maize and HT maize are derived from field trials conducted within the EU-funded ECOGEN project in combination with secondary data sources. Adoption curves, hurdle rates and Maximum Incremental Social Tolerable Irreversible Costs (MISTICs) are calculated at country level for selected EU-15 member states. In general, the results show that the MISTICs on a per capita level are very small confirming previous results calculated in values for the year 1995. The MISTICs per farm are much larger. This indicates a problem for decision makers.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 33229.
Date of creation: 11 Apr 2007
Date of revision:
agriculture policy; biotechnology; GMOs; MISTICs; technical change;
Find related papers by JEL classification:
- Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Moschini, GianCarlo & Lapan, Harvey E. & Sobolevsky, Andrei, 2000.
"Roundup Ready Soybeans and Welfare Effects in the Soybean Complex,"
Staff General Research Papers
1799, Iowa State University, Department of Economics.
- Giancarlo Moschini & Harvey Lapan & Andrei Sobolevsky, 2000. "Roundup ready� soybeans and welfare effects in the soybean complex," Agribusiness, John Wiley & Sons, Ltd., vol. 16(1), pages 33-55.
- Eric Tollens, 2004.
"Biodiversity versus transgenic sugar beet: the one euro question,"
European Review of Agricultural Economics,
Foundation for the European Review of Agricultural Economics, vol. 31(1), pages 1-18, March.
- Demont, Matty & Wesseler, Justus & Tollens, Eric, 2002. "Biodiversity Versus Transgenic Sugar Beet: The One Euro Question," Working Papers 31859, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
- Demont, Matty & Wesseler, Justus & Tollens, Eric, 2003. "Biodiversity versus Transgenic Sugar Beet: The One Euro Question," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25831, International Association of Agricultural Economists.
- Pretty, J. N. & Brett, C. & Gee, D. & Hine, R. E. & Mason, C. F. & Morison, J. I. L. & Raven, H. & Rayment, M. D. & van der Bijl, G., 2000. "An assessment of the total external costs of UK agriculture," Agricultural Systems, Elsevier, vol. 65(2), pages 113-136, August.
- Alex Winter-Nelson & Koffi Amegbeto, 1998. "Option Values to Conservation and Agricultural Price Policy: Application to Terrace Construction in Kenya," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 409-418.
- Jim Leitzel & Erik Weisman, 1999. "Investing in Policy Reform," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 155(4), pages 696-, December.
- Richards, Timothy J. & Green, Gareth P., 2003. "Economic Hysteresis in Variety Selection," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 35(01), April.
- Robert Weaver & Justus Wessler, 2004. "Monopolistic pricing power for transgenic crops when technology adopters face irreversible benefits and costs," Applied Economics Letters, Taylor & Francis Journals, vol. 11(15), pages 969-973.
- Moschini, GianCarlo & Lapan, Harvey E. & Sobolevsky, Andrei, 2000.
"Trading Technology As Well As Final Products: Roundup Ready Soybeans And Welfare Effects In The Soybean Complex,"
Proceedings:Transitions in Agbiotech: Economics of Strategy and Policy, June 24-25, 1999, Washington, D.C.
26002, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
- Moschini, GianCarlo & Lapan, Harvey E. & Sobolevsky, Andrei, 2000. "Trading Technology As Well As Final Products: Roundup Ready Soybean and Welfare Effects in the Soybean Complex," Staff General Research Papers 5317, Iowa State University, Department of Economics.
- Bryant, Amy & Richards, Timothy J., 1998. "Hysteresis And The Shortage Of Agricultural Labor," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20858, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- McDonald, Robert & Siegel, Daniel, 1986. "The Value of Waiting to Invest," The Quarterly Journal of Economics, MIT Press, vol. 101(4), pages 707-27, November.
- Carl Pray & Danmeng Ma & Jikun Huang & Fangbin Qiao, 2001.
"Impact of Bt Cotton in China,"
CEMA Working Papers
510, China Economics and Management Academy, Central University of Finance and Economics.
- Scatasta, Sara & Wesseler, Justus & Demont, Matty, 2005. "Irreversibility, Uncertainty and the Adoption of Transgenic Crops: the Case of BT-Maize in France," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24758, European Association of Agricultural Economists.
- Conrad, Jon M., 2000. "Wilderness: options to preserve, extract, or develop," Resource and Energy Economics, Elsevier, vol. 22(3), pages 205-219, July.
- Frisvold, George B. & Sullivan, John & Raneses, Anton, 2003. "Genetic improvements in major US crops: the size and distribution of benefits," Agricultural Economics, Blackwell, vol. 28(2), pages 109-119, March.
- Kikulwe, Enoch M. & Birol, Ekin & Wesseler, Justus & Falck-Zepeda, JosÃ© Benjamin, 2013. "Benefits, costs, and consumer perceptions of the potential introduction of a fungus-resistant banana in Uganda and policy implications," IFPRI book chapters, in: Falck-Zepeda, JosÃ© Benjamin & GruÃ¨re, Guillaume P. & Sithole-Niang, Idah (ed.), Genetically modified crops in Africa: Economic and policy lessons from countries south of the Sahara, chapter 4, pages 99-141 International Food Policy Research Institute (IFPRI).
- Kovacevic, Vujadin & Wesseler, Justus, 2010. "Cost-effectiveness analysis of algae energy production in the EU," Energy Policy, Elsevier, vol. 38(10), pages 5749-5757, October.
- Skevas, Theodoros & Fevereiro, Pedro & Wesseler, Justus, 2010. "Coexistence regulations and agriculture production: A case study of five Bt maize producers in Portugal," Ecological Economics, Elsevier, vol. 69(12), pages 2402-2408, October.
- Xianlei Ma & Justus Wesseler & Nico Heerink & Futian Qu, 2013. "Land Tenure Reforms and Land Conservation Investments in China ¨C What Does Real Option Value Theory Tell Us?," Review of Economics & Finance, Better Advances Press, Canada, vol. 3, pages 19-33, August.
- Smyth, Stuart J. & Gusta, Michael & Belcher, Kenneth & Phillips, Peter W.B. & Castle, David, 2011. "Environmental impacts from herbicide tolerant canola production in Western Canada," Agricultural Systems, Elsevier, vol. 104(5), pages 403-410, June.
- Skevas, Theodoros & Fevereiro, P. & Wesseler, Justus, 2008. "Coping with ex ante Regulations and ex post Liability Rules for Planting Bt-maize – The Portuguese Experience," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44189, European Association of Agricultural Economists.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.